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Gen Y
Prestige Brand
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SCOT T G A L LO W AY May 3, 2010
N Y U S tern
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From the Edge of the Network
SCOTT GALLOWAY STERLING LANIER
The Next “Greatest” Generation Five Things Prestige Execs
Need to Know About Gen Y
MATTHEW BISHOP
The World Gen Y Will Inherit GREG SHOVE
Finding Gen Y Online
LAURA McEWEN
This May, L2’s Generation Next Forum dissects the ADAM WALDEN
The Dynamics of Influence
characteristics, influence, and brand affinities of tomorrow’s The Evolution of Gaming
JARED COHEN
affluent consumers. The largest gathering of prestige How Gen Y & Technology Are JANE BUCKINGHAM
marketers in North America, L2 forums combine education Changing the Course of History What Gen Y Wants from
and entertainment to inspire and enlighten. Your Brand
KRYSTAL BALL
How Gen Y Will Govern ANDREW WAGNER
featuring: JEFF DENBY
Mindful Consumption: Gen Y
& the New Marketplace
Change Starts With Your Underwear
• HIGH-VELOCITY PRESENTATIONS (TED format) by thought leaders BEN KAUFMAN
from industry, academia, and Gen Y DR. JAY PARKINSON Social, Product Development,
Gen Y, Health, & the House Call
& Gen Y
• GROUNDBREAKING RESEARCH on Gen Y values, spending power, ERIN SCHRODE
and media consumption DOUG AKIN
The Green Generation
How Gen Y Can Evangelize
• EDGE-OF-THE NETWORK product demonstrations TAVI GEVINSON Your Brand
The Unpredictability of Gen Y
SCOTT GALLOWAY
• NETWORKING with 500+ senior executives from prestige, media, CINDY GALLOP Results of the L2 Gen Y
and technology firms Make Love Not Porn Prestige Ranking
Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
M E T H O D O LO GY
Crystal Ball
its kind, surveying 450 high-achieving and high-earning
Gen Y adults. On average this sample set is on a
trajectory to earn more than $100,000 in the short-term
and double their income within the next five years.
Gen Y goodwill is arguably the closest thing to a crystal ball for predicting a
The Panel:
prestige brand’s long-term viability. Although currently not the target market,
• 448 individuals; average age 28.5
Gen Y is the future of prestige. Here’s why:
• 55% female; 45% male
• Generation Y (born 1977-1994) represents the largest consumer group in • From 45 countries including the U.S. (68%), India
U.S. history. Estimated at 70 million to 85 million strong or roughly 25% of (6%), China (3%), Brazil (2%), France (2%), Canada
(2%), Mexico (1%), the U.K. (1%), and Italy (1%)
the U.S. population, Gen Y is larger than the Baby Boomer generation
and is supplanting them as the most important economic force.1 • 83% expect to make more than $100,000 per year in
the short term (next 24 months)
• Gen Y’s annual spending power exceeds $200 billion. They also The Questions:
influence another $50 billion2 in purchases. • Respondents scored sentiment for 105 iconic
prestige brands
• By 2017 Gen Y will eclipse Boomers in spending power.3
• Six industry categories: Auto, Beauty & Skincare,
Spirits & Champagnes, Fashion, Hotels, Watches
• Both Boomers and Gen X look to Gen Y for style and trend cues. & Jewelry
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
OB SERVATIONS
Unprompted, Apple is considered the #1 brand among men BEAUTY & SKINCARE
and #9 for women. Apple is the #1 most likely next prestige HOTELS
brand purchase for both men and women.
SPIRITS & CHAMPAGNES
Arguably, it’s better to be disliked than not known at all, and SPIRITS & CHAMPAGNES
women report they “hate” the brand. The Trump aversion sug-
gests that although supremely brand conscious, Gen Y is wary
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
OB SERVATIONS
19%
Will You Be My Friend? 20%
The store is still the dominant channel, but more than half of
the women purchased luxury goods on discount sites, such
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
OB SERVATIONS
as Gilt.com (54%), and retail sites, including Net-A-Porter.com W H AT I S I MPORTANT TO YOU IN A PRESTIGE BRAND?
(53%), yet less than one-third purchased directly from a brand % of All Respondents
site. Female adoption of these web portals signals a shift in
luxury retail and is an indication of things to come. Without ro- 0% 20% 40% 60% 80% 100%
bust direct-to-consumer e-commerce strategies, luxury brands
QUALITY 82%
risk leaving their brands, and the rich sales and marketing
data, in the hands of third party retailers. AUTHENTICITY 46%
IMAGE 44%
Print Holding and Blogs Rising CREATIVITY 41%
Print is not dead, and it continues to be a primary source for EXCLUSIVITY 37%
information on prestige brands. It is the #1 source for women
HERITAGE 20%
and #2 for men.
INNOVATION 12%
Word of mouth recommendations from family & friends are
SOCIAL RESPONSIBILITY 8%
also crucial, ranking #1 for men and #2 for women. Although
respondents do not seem to be directly engaging with brands PERSONALIZATION 6%
via social media, almost one in five Gen Y’s consider blogs COMMUNITY 4%
one of their top three sources for information on prestige
brands.
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
OB SERVATIONS
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
OB SERVATIONS
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
CASE STUDIES
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
CASE STUDIES
Digital Savvy:
Earlier this year, Audi bested icons BMW and Mercedes-Benz
to earn the top spot in L2’s Digital IQ Index for auto brands.
This accomplishment is a tribute to the company’s deft use of Concept cars on Audi Facebook page
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking Contact Us
C ASE ST UD IES
Chanel
New Media & Traditional Assets: iPhone app
Chanel-news.com
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
MAC homepage
CASE STUDIES
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
RANKING: BY CATE G O R Y
AUTOMOBILES
FEMALES MALES
Rank Brand Category Class Rank Brand Category Class
1 BMW Auto Epic 1 BMW Auto Epic
2 Mercedes-Benz Auto Epic 2 Ferrari Auto Epic
3 Audi Auto Epic 3 Porsche Auto Epic
4 Porsche Auto BFF 4 Lamborghini Auto Epic
5 Lexus Auto BFF 5 Audi Auto Epic
6 Ferrari Auto BFF 6 Aston Martin Auto Epic
7 Land Rover Auto BFF 7 Mercedes-Benz Auto Epic
8 Bentley Auto Whatever 8 Bentley Auto BFF
9 Jaguar Auto Whatever 9 Land Rover Auto BFF
10 Aston Martin Auto Whatever 10 Lexus Auto BFF
11 Lamborghini Auto Whatever 11 Lotus Auto BFF
12 Infiniti Auto Tired 12 Jaguar Auto Whatever
13 Acura Auto Tired 13 Infiniti Auto Whatever
14 Cadillac Auto Tired 14 Acura Auto Whatever
15 Lotus Auto Off the Grid 15 Cadillac Auto Whatever
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
RANKING: BY CATE G O R Y
FASHION
FEMALES MALES
Rank Brand Category Class Rank Brand Category Class
1 Chanel Fashion Epic 1 Ralph Lauren Fashion Epic
2 Marc Jacobs Fashion Epic 2 Hugo Boss Fashion BFF
3 Prada Fashion Epic 3 Giorgio Armani Fashion BFF
4 Hermes Fashion Epic 4 Burberry Fashion BFF
5 Gucci Fashion BFF 5 Gucci Fashion BFF
6 Salvatore Ferragamo Fashion BFF 6 Hermes Fashion Whatever
7 Burberry Fashion BFF 7 Louis Vuitton Fashion Whatever
8 Christian Dior Fashion BFF 8 Prada Fashion Whatever
9 Louis Vuitton Fashion BFF 9 Salvatore Ferragamo Fashion Whatever
10 Ralph Lauren Fashion BFF 10 Chanel Fashion Whatever
11 YSL Fashion BFF 11 Dolce & Gabbana Fashion Whatever
12 Michael Kors Fashion BFF 12 Versace Fashion Whatever
13 Giorgio Armani Fashion BFF 13 Coach Fashion Whatever
14 Dolce & Gabbana Fashion BFF 14 Christian Dior Fashion Whatever
15 Givenchy Fashion Whatever 15 Marc Jacobs Fashion Whatever
16 Fendi Fashion Whatever 16 Fendi Fashion Tired
17 Valentino Fashion Whatever 17 Kate Spade Fashion Tired
18 Kate Spade Fashion Whatever 18 YSL Fashion Tired
19 Versace Fashion Whatever 19 Michael Kors Fashion Tired
20 Coach Fashion Whatever 20 Valentino Fashion Tired
21 Bottega Veneta Fashion Whatever 21 Givenchy Fashion Tired
22 Hugo Boss Fashion Whatever 22 Bally Fashion Tired
23 Balenciaga Fashion Tired 23 Bottega Veneta Fashion Off the Grid
24 Tory Burch Fashion Tired 24 Tory Burch Fashion Off the Grid
25 Bally Fashion Off the Grid 25 Balenciaga Fashion Off the Grid
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
RANKING: BY CATE G O R Y
HOTELS
FEMALES MALES
Rank Brand Category Class Rank Brand Category Class
1 Ritz-Carlton Hotels Epic 1 Four Seasons Hotels Epic
2 Four Seasons Hotels Epic 2 Ritz-Carlton Hotels BFF
3 W Hotels Hotels Epic 3 W Hotels Hotels BFF
4 Waldorf Astoria Hotels BFF 4 Waldorf Astoria Hotels BFF
5 St. Regis Hotels Whatever 5 Intercontinental Hotels Whatever
6 Mandarin Oriental Hotels Whatever 6 Mandarin Oriental Hotels Whatever
7 Intercontinental Hotels Tired 7 Park Hyatt Hotels Whatever
8 Park Hyatt Hotels Tired 8 St. Regis Hotels Whatever
9 Peninsula Hotels Off the Grid 9 Trump Hotels Tired
10 Trump Hotels Off the Grid 10 Peninsula Hotels Tired
11 Fairmont Hotels Off the Grid 11 Fairmont Hotels Tired
12 Luxury Collection Hotels Off the Grid 12 Luxury Collection Hotels Off the Grid
13 Conrad Hotels Off the Grid 13 Conrad Hotels Off the Grid
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Gen Y
Prestige Brand Want to know more about your brand’s ranking?
Ranking CONTACT US
RANKING: BY CATE G O R Y
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